Planning for retirement can be complicated, but it’s essential to ensure financial security later in life. Retirement plans like 401(a) and 401(k) accounts are designed to help you save, but they work in different ways. The purpose of this article is to compare the differences between a 401(a) and a 401(k) plan.
Key differences between a 401(a) and 401(k) include eligibility requirements, contribution structures, and the extent of employer involvement. The best choice for you depends on your individual circumstances and, in many cases, your employment sector.